Business context and reporting period
The Bank of New York Mellon Corporation (BNY Mellon; NYSE: BK) filed this Form 10-K for the fiscal year ended December 31, 2017. The company is a global financial-services firm operating through Investment Management and Investment Services, with an Other segment covering activities including corporate treasury, trading, leasing and business exits.
- Assets under custody and/or administration: $33.3 trillion at year-end 2017; assets under management: $1.9 trillion.
- Approximately 52,500 full-time employees at December 31, 2017.
- The filing incorporates the 2017 Annual Report for its financial statements and detailed MD&A; those materials are not included in the supplied text.
Financial results, liquidity and capital
The supplied filing text does not provide clear values for revenue, net income, cash flows, margins, debt, liquidity, capital ratios, or returns. It refers readers to the incorporated Annual Report for these measures; year-over-year financial comparisons cannot be assessed from the text provided.
Material changes and notable developments
- Charles W. Scharf became CEO in July 2017 and Chairman in January 2018. Several executive roles, including CFO, also changed in January 2018.
- BNY Mellon planned to move its headquarters to 101 Barclay Street in 2018 and sublease its existing headquarters space at 225 Liberty Street.
- The company identified the recently enacted Tax Act as a potential factor affecting net income and its effective tax rate, but the supplied text gives no quantified impact.
Outlook, risks and controls
The filing provides no specific financial guidance in the supplied text. Forward-looking statements are subject to risks and uncertainties. Risks highlighted include cybersecurity and technology disruptions, operational and control failures, extensive regulation and capital/liquidity requirements, market and interest-rate volatility, dependence on fee-based revenue, FX activity, counterparty exposure, competition, litigation and reputational harm, Brexit and geopolitical events, and tax or accounting changes. Management states that disclosure controls were effective as of December 31, 2017, and that fourth-quarter changes had not materially affected internal control over financial reporting.
Important facts for investors to verify
- Consult the incorporated Annual Report for audited results, cash flows, balance-sheet details, capital and liquidity measures, and year-over-year comparisons.
- Verify the quantified effects of the Tax Act, including any unusual or one-time items.
- Review capital distributions, regulatory constraints, and the company’s capital and liquidity position.
- Assess the status and financial implications of significant legal proceedings and other contingencies, which are referenced but not described in the supplied text.
- Evaluate whether operational, cybersecurity, market, interest-rate and fee-revenue risks have changed since year-end.